4 Ways Tech Can Improve Your Investment Strategy Innovations have radically democratized investing, making it more transparent and easier to engage in.
By Pritom Das •
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Investing has always had the feel of being a traditional affair that's done by older people or the extremely wealthy, and it's often an intimidating activity for many people to consider getting into. That has been changing in recent times, and one of the most important factors is the attention that has come from the tech industry.
From new fintech innovations like blockchain to apps that help people make myriad investment decisions, you can now proceed with full confidence that there are several tech aids to help you navigate the markets and come out unscathed and with a fuller pocket. Here are a few of the options you have and how to leverage them properly.
Financial-Planning Software
When it comes to investing, there is nothing as important as comprehensive knowledge of your portfolio and cash-flow situation. If you don't have that knowledge at hand, you'll find it difficult to monitor your stocks or other investments, and you might make decisions that are harmful to your overall portfolio.
With the financial-planning software now available, that information is literally at your fingertips. You can access budgeting tools, market and volatility analyses and other features with apps on your phone or computer.
Related: The Case for Tech Investing in Emerging Markets
Communication
If you want to maximize your profitability, you'll need to work with a competent financial advisor, especially if you're dealing with a lot of funds. One of the ways to make sure you're getting the most from that relationship is by ensuring that you keep in touch as much as you have to. That way, you'll be up to date on what's happening in the market and with your portfolio specifically.
According to Umesh Agarwal, CEO of Credit 101, "It's important to ask your advisors what communication channels they use and incorporate social media, VOIP or any other solution that'll help you get updates and relay instructions almost instantly. In today's world of split-second happenings on various markets, close communication will prove to be crucial for profitability and loss avoidance."
Security
If you're like most people, the vast majority of your financial transactions are conducted online. While that's a great thing that makes life and investment much more convenient, it also exposes you to attacks by hackers and other security breaches that could lead to financial loss if you don't protect yourself well enough.
You'll need to go beyond the usual precautions for keeping data safe. It might be worthwhile to consider using a hard token or biometric verification to further secure your transactions. Don't forget the basics though. Use secure password managers to keep your sensitive details locked away, and make sure your software is updated to reduce the risk of intrusions.
Situational Awareness
Before you can make the right deals, you have to know that the opportunities exist. With information overload nowadays, it's very easy to lose track of important news that might be useful. It's even possible to miss news that could have a major impact on your portfolio.
To fix that, you can use news-aggregation apps that use AI to track headlines in sync with your interests. With the recent advances in machine learning, those apps can help you identify opportunities automatically without your having to spend as much time scouring the internet or newspapers yourself.
Related: 3 Tech Trends to Help Bring New Investors to Real Estate
In all, the potential of technological innovation in revolutionizing investment is great and will probably have markets looking completely different a few years down the line. But even today, there are a variety of tools in the categories above that can help you get ahead of the curve and reward your investment strategy.
